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To understand just how much you are actually paying in superannuation fees, you have to demystify the various ways products and funds describe them. In June 2004 the SIS Act and Regulations were amended to require all superannuation trustees to apply to become a Registrable Superannuation Entity Licensee (RSE Licensee) on top of that each of the superannuation funds the trustee operates is also called for to be signed up.

Aside from a couple of very details provisions in the Superannuation Industry (Supervision) Act 1993 (mainly related to investments in assets associated with the company or affecting a self-managed superannuation fund) funds are not subject to certain asset requirements or investment regulations.

Division 293 tax (additional tax obligation on concessional payments) is payable if revenue for additional charge purposes (aside from reportable superannuation contributions), plus concessionally strained superannuation contributions (likewise known as low tax payments) are greater than $250,000.

The PC record concluded that fees can have a significant impact on participants-- for Bookmarks example, a boost in costs of just 0.5% can set you back a common full-time worker regarding 12% of their balance (or $100,000) by the time they get to retirement".

Special regulations use in connection with companies running" specified benefit" superannuation systems, which are less usual conventional employer funds where advantages are figured out by a formula typically based upon an employee's final average income and size of service.